Technology

Oracle invokes force majeure on a 2.45 gigawatt Stargate campus

Two state permit denials for a gas pipeline threaten the 2028 timeline, sending the project's US$18 billion construction loan trading below 90 cents on the dollar.

Oracle chairman Larry Ellison speaking on stage.

Oracle chairman Larry Ellison. Oracle has invoked force majeure on its New Mexico Stargate campus. Digitally illustrated image.

By Editor · 29 September 2026

By Zara Kincaid · 2026-09-26

TLDR

Oracle has served a force majeure notice on developer Stack Infrastructure over Project Jupiter, a 2.45 gigawatt AI campus in New Mexico central to the Stargate initiative. Two pipeline permit denials and a contested fuel-cell air permit are the said triggers. Oracle shares fell 4 per cent and the project's US$18 billion construction loan is trading below 90 cents on the dollar.

KEY TAKEAWAYS

01Oracle sent a force majeure notice to Stack Infrastructure to shield itself from payment obligations if the 2028 start slips.

02Energy Transfer's Green Chile pipeline was denied state land rights-of-way twice, pushing projected completion to February 2027.

03Blue Owl said financial commitments to the multiyear project remain unchanged despite the notice.

04The US$18 billion construction loan from roughly 20 banks is now trading below 90 cents on the dollar.

05Oracle shares dropped 4 per cent on 24 September 2026 after the force majeure notice became public.

The notice and what it protects

Oracle has delivered a force majeure notice to Stack Infrastructure, the developer behind Project Jupiter, a 2.45 gigawatt AI data-centre campus in Doña Ana County, New Mexico, sitting at the centre of the Stargate initiative Oracle launched with OpenAI and SoftBank in January 2025.^[1] The legal mechanism lets Oracle suspend payment obligations if conditions outside its control prevent the project reaching its planned 2028 operational start.

An Oracle spokesperson said the project remains on schedule.^[2] Blue Owl Capital, which owns Stack Infrastructure through its portfolio, matched that line, with a spokesman saying the notice does not change the financial commitments to the multiyear project.^[3] Debt markets are focused on the gap between those reassurances and the legal protection Oracle just invoked.

Oracle, OpenAI and SoftBank unveil Stargate data center expansions

Two permit denials and a contested fuel-cell plan

The force majeure notice points to two distinct regulatory blockages. Energy Transfer's Green Chile pipeline, a 17-mile gas line intended to supply fuel to the campus, is the more concrete problem. The New Mexico State Land Office rejected Energy Transfer's initial application for a 0.6-mile segment crossing state trust land on 31 March 2026, then issued a second denial on 14 July 2026 after a revised submission.^[4] Commissioner Garcia-Richard has not signalled any change in position, and the pipeline now carries a projected completion date of February 2027 at the earliest.

The second blockage is the air quality permit for the campus's proposed microgrid: 2,275 methane-fuelled fuel cells capable of generating 2.46 gigawatts, which the New Mexico Environment Department is still reviewing under active legal challenge.^[5] New Mexico Attorney General Raúl Torrez filed responses on 5 September 2026 supporting emergency petitions against the department's permitting decisions, adding state-level legal weight to the environmental groups already contesting the permit.^[5] A stalled pipeline and a contested fuel-cell permit together leave the campus without a confirmed power supply path.

How banks and markets read the notice

Debt markets moved faster than the official statements. The US$18 billion construction loan assembled from roughly 20 banks is now trading below 90 cents on the dollar, a discount that prices in timeline risk rather than outright default, and Oracle shares fell 4 per cent on 24 September 2026 once the notice became public.^[3]

Project Jupiter was announced as part of the broader Stargate programme, a commitment Oracle, OpenAI and SoftBank unveiled at a White House event in January 2025 targeting up to $500 billion in US AI infrastructure investment.^[1] The New Mexico campus alone carries lifetime investment projections of up to $165 billion, including commitments to local water systems and schools, with Oracle's role being to lease campus capacity and route it to OpenAI's AI workloads as part of its cloud infrastructure expansion.

Force majeure is a protective instrument, and the two pipeline denials are on the public record alongside the Attorney General's intervention and a live loan discount. February 2027 is the earliest date the Green Chile pipeline is now projected to complete.

This article contains analysis and commentary on market conditions. It does not constitute financial, investment, or professional advice. Past performance is not indicative of future results. Always consult a qualified adviser before making financial decisions.

SOURCES & CITATIONS

FREQUENTLY ASKED QUESTIONS

What is a force majeure notice and why did Oracle serve one?

A force majeure clause in a construction or lease agreement suspends a party's payment or performance obligations when events outside its control prevent the contract from proceeding on schedule. Oracle served the notice on Stack Infrastructure to protect itself from financial penalties if Project Jupiter misses its planned 2028 start date because of the pipeline and permit delays in New Mexico.

Why has the Green Chile pipeline been blocked?

The New Mexico State Land Office denied Energy Transfer's application to route a 0.6-mile segment of the 17-mile Green Chile pipeline across state trust land, first on 31 March 2026 and again on 14 July 2026. Commissioner Garcia-Richard has not approved a revised route, pushing the projected completion to February 2027 at the earliest.

Does the force majeure notice mean Project Jupiter is cancelled?

No. Both Oracle and Blue Owl have said publicly that the project remains on schedule and that financial commitments are unchanged. The notice is a legal protection against payment liability, not a termination of the agreement. The construction loan trading below 90 cents on the dollar shows that debt markets are pricing in meaningful timeline risk.

Zara Kincaid

Zara Kincaid writes about artificial intelligence and search. Her focus is what happens to businesses when the front page of the internet stops being a list of links and starts being an answer.